With Borders set to declare fourth-quarter results next week, expectations are grim: more multi-million dollar losses, store closures, payroll slashings and, with shares currently trading at 64 cents per share, potential de-listing from the NYSE. Shareholders will hear more about the company’s strategy, including plans for a reverse stock split to satisfy NYSE conditions, next Wednesday when CEO Ron Marshall hosts a conference call with analysts and investors. One turnaround expert tells the Detroit Free Press that Borders seems to be one of buying time and hoping economic recovery is just around the corner. “They are figuring their brand name […]
Earnings Reports
Weak Dollar Pushes Random House Results Further Down
Bertelsmann reported annual results this morning in Germany, with sales at Random House falling 6.3 percent for the year, to 1.721 billion euros, as EBIT fell even more, down 21 percent at 137 million euros. (After the first six months of the year, Random had been down almost 8 percent in sales and nearly 30 percent in EBIT.) The company says the drops are “primarily due to negative exchange rate effects,” insisting that “adjusted for these and for acquisitions, revenues remained stable.” But those sales are the lowest recorded in the past seven years (during which the company has made […]
Hastings Entertainment Q4 Earnings Decline, Book Comps Up
Hastings Entertainment reported a decline in fourth-quarter earnings, with a net income of $4.07 million or $0.41 per share, compared to $5.82 million or $0.54 per share in corresponding period one year earlier. Total revenue for the quarter declined 2.7 percent to $166.88 million, from $171.49 million a year earlier.For the twelve-month period, net earnings fell to $4.1 million or $0.39 per share from $10.2 million or $0.93 per share in the previous year, while total revenues decreased 1.6% to $538.7 million from $547.7 million last year. Comparable store revenues for books, however, rose 1.3 percent for the year ending […]
BAM Sales Off Over 5 Percent
Same-store sales at Books-a-Million fell 5.3 percent in their fiscal fourth quarter (and 2.5 percent overall) at $164 million, as net income fell 4.2 percent to $11.4 million. Sales were off 4.1 percent for the full year, at $513.3 million, for a same-store sales decline of 7.2 percent. Net income suffered more, falling almost 35 percent to $10.8 million. Newly-appointed ceo Clyde Anderson says “The fiscal year closed with an improvement in the negative sales trend we experienced in the third quarter. We remain focused on maintaining discipline in expense control, inventory management and the maintenance of a strong balance […]
BN Reduces Inventory by 11 Percent
In their earnings conference call with investors, Barnes & Noble noted that “inventories declined $155 million or 11 percent compared to last year.” They say they were able to “improve inventory turns to the highest levels in our history” and indicated “our in stock percentage of being in stock on key titles and back list did not suffer at all” as a result. Other supply chain improvements “resulted in reduced purchases from book wholesalers which of course carry lower markups.” A good portion of the inventory reductions were in music, and the company indicated DVDs and music combined now comprise […]
BN Sees Continued Sales Drop After 7.3 Percent Decline in Q4
Barnes & Noble reported fourth quarter sales for the period ending January 31 of $1.439 billion, down 7.3 percent on a same-store basis and down 4.8 percent overall, as BN.com sales of $157 million were down 10.4 percent for the quarter. Net earnings for the quarter were $81.2 million, or $1.46, in line with the previously-reduced guidance. CEO Steve Riggio says in the release, “As we look to 2009, we expect the challenging environment to continue. Sales forecasts have been planned accordingly and expenses have been cut. The strength of our balance sheet remains a top priority. And, while we […]